A high-growth industrial hygiene provider leveraging proprietary technologies and a direct sales model to capture expanding market share in critical infrastructure sectors.
Investors should consider Palomar as a compelling growth story given its robust revenue acceleration from $327.1M in 2022 to over $876M currently, coupled with an impressive operating cash flow of $409.1M that funds further strategic M&A and share repurchases.
Concerns include the company's substantial investment activity with investing cash flows of -$354.0M in the latest period which could strain liquidity if acquisitions fail to generate immediate synergies, alongside elevated debt levels relative to equity in a capital-intensive growth phase.
Palomar Holdings Inc. operates primarily in the industrial cleaning and hygiene sector, providing specialized solutions to commercial and institutional markets including healthcare facilities, manufacturing plants, and educational institutions.
Palomar Holdings delivered exceptional financial performance in 2025 with revenue surging to $876.0M and net income reaching $197.1M, representing a 67% year-over-year increase driven by strong operational execution and strategic acquisitions totaling $58.6M.
The industrial hygiene and cleaning products market is experiencing steady expansion driven by tightening sanitation regulations in healthcare and food sectors, creating a favorable tailwind for specialized manufacturers like Palomar who offer high-margin, repeatable revenue streams.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $327.1M | $375.9M | $553.9M | $876.0M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $327.1M | $375.9M | $553.9M | $876.0M |
| Operating Expenses | $259.5M | $272.3M | $402.7M | $622.6M |
| Operating Income | $67.6M | $103.6M | $151.2M | $253.4M |
| Stock-Based Comp | $11.6M | $14.9M | $16.7M | $21.0M |
| D&A | $4.1M | $4.5M | $5.1M | $8.9M |
| Depreciation | $200.0K | $200.0K | — | $300.0K |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $873.0K | $3.8M | $1.1M | $392.0K |
| Interest Income | $13.6M | $23.3M | $35.4M | $55.2M |
| Pre-Tax Income | $67.6M | $103.6M | $151.2M | $253.4M |
| Income Tax | $15.4M | $24.4M | $33.6M | $56.3M |
| Continuing Ops | $52.2M | $79.2M | $117.6M | $197.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $52.2M | $79.2M | $117.6M | $197.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $52.2M | $79.2M | $117.6M | $197.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $68.1M | $51.5M | $80.4M | $106.9M |
| PP&E (Net) | $603.0K | $373.0K | $429.0K | $2.6M |
| Intangibles | $8.3M | — | — | — |
| Goodwill | — | $3.8M | $3.8M | $30.5M |
| Operating Leases | $1.7M | $934.0K | $7.6M | $6.9M |
| Total Assets | $1.31B | $1.71B | $2.26B | $3.05B |
| Total Liabilities | $921.7M | $1.24B | $1.53B | $2.11B |
| Shareholders' Equity | $384.8M | $471.3M | $729.0M | $942.7M |
| Retained Earnings | $87.7M | $144.6M | $262.2M | $422.0M |
| AOCI | $-36.5M | $-24.0M | $-26.8M | $-2.5M |
| Total L&E | $1.31B | $1.71B | $2.26B | $3.05B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $52.2M | $79.2M | $117.6M | $197.1M |
| Non-Cash Adjustments | $-209.1M | $-368.7M | $-250.3M | $-250.2M |
| Working Capital Changes | $326.5M | $405.7M | $393.9M | $462.2M |
| Cash from Operations | $169.6M | $116.1M | $261.2M | $409.1M |
| Capital Expenditures | $313.0K | $15.0K | $243.0K | $137.0K |
| Cash from Investing | $-156.8M | $-128.5M | $-306.2M | $-354.0M |
| Share Buybacks | $34.4M | $22.3M | $0 | $37.3M |
| Cash from Financing | $5.0M | $-3.9M | $73.8M | $-28.8M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $17.8M | $-16.3M | $28.7M | $26.4M |
| Beginning Cash | $50.4M | $68.2M | $51.9M | $80.5M |
| Ending Cash | $68.2M | $51.9M | $80.5M | $106.9M |
Revenue is derived from the sale of industrial cleaning products, equipment, and services tailored for heavy-duty applications in healthcare, manufacturing, and food processing environments, supported by a growing portfolio of acquired brands and distribution networks.
Significant exposure to economic downturns affecting industrial clients in manufacturing and healthcare sectors, potential regulatory changes impacting chemical usage standards, currency fluctuations given the global nature of some supply chains, and the high capital intensity required for aggressive expansion and acquisitions.
The company possesses a deep proprietary knowledge base regarding specific industry hygiene challenges, a highly skilled sales force with direct relationships to end-users, and a scalable platform model that allows for rapid integration of acquisitions without significant brand dilution.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.